A good trading opportunity is setting up in crude oil right now. There is a good chance that crude is at or near the start of a new trading cycle and the price is at a strong zone of support. This is a bullish set up, and it is an ideal spot to go long as we can set our stop loss just below the buy price underneath the support so should it break we would exit the longs with minimal loss. This support level is around $88 and the price of oil is just under $90 at the time of this writing.
The broad stock market continues to look bullish (at least short-term), and because crude oil and the broad stock market often move hand in hand (they both tend to reflect public sentiment about the economy), this bodes well for crude. Interestingly, the industrial metal copper also looks poised for a short-term rally, and this too would be a bullish broad economic indicator. We have the advantage here of getting in at the start of a potential rally in crude, whereas the broad stock market's rally is already underway. Note that our previous reluctance to sell crude oil short because of possible conflicts in the Middle East leading to a surge in price is irrelevant here as we are going long and such a conflict would only increase our profit.
Based on all the above, we are establishing long positions in crude oil today.